TMI Blog2019 (2) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... decided on the basis of Rule 7 of the Valuation Rules. Appeal allowed - decided in favor of appellant. - MA (EH)-77319/18 & Cus. Appeal No.76149/16 - MO/75030/2019 & FO/75076/2019 - Dated:- 24-1-2019 - SHRI P.K. CHOUDHARY, MEMBER (JUDICIAL) And SHRI V. PADMANABHAN, MEMBER (TECHNICAL) Shri Muthu Venkataraman, Advocate for the Appellant (s) Shri S. K. Naskar, Asstt. Commr. (AR) for the Revenue ORDER Per Bench : The present Misc. Application is for early hearing of the Cus. Appeal No.76149/16, which has been filed against the Order-in- Appeal No.05/Cus/CCP/2016 dt.29.03.2016. 2. After carefully considering the reasons as cited in the application, the early hearing is allowed. With the concurrence of both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aman, ld.Advocate and Revenue is represented by Shri S.K. Naskar, ld.D.R.. 5. The main arguments of the ld.Advocate are summarized below : (i) The ld.Advocate submitted that the Customs Authorities have loaded the declared value by adding amounts towards freight, insurance and landing charges. He submitted that IOCL price already adopted and declared by the appellant for assessment purposes, already included all charges, like, freight, insurance and landing charges. To this effect, he submitted a Certificate from M/s IOCL, Orissa State Office, Bhubaneswar. He further submitted that the value declared was the value adopted not only at the Port of Paradeep, but also in Kolkata and Haldia. (ii) The ld.Advocate submitted that the issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities have taken the view that Rule 9 comes into play and Rule 9(2) mandates addition of (a) the cost of transport of the imported goods to the place of importation, (b) loading, un-loading handling charges associated with delivery of the imported goods at the place of importation and (c) the cost of insurance. 9. The claim of the appellant is that the above Rule will not come into play in the circumstances of the present case inasmuch as IOCL price declared by them has already included the elements of freight, insurance and landing charges. To this effect, the appellant has also submitted a Certificate issued by IOCL. 10. We find that the issue is a recurring one and for the earlier period, the same first appellate authority i.e. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssociated costs incurred within India. (iii) The customs duties and other taxes payable in India by reason of importation or sale of the goods. (2) If neither the imported goods nor identical nor similar imported goods are sold at or about the same time of importation of the goods being valued, the value of imported goods shall, subject otherwise to the provisions of sub-rule (1) of this rule, be based on the unit price at which the imported goods or identical or similar imported goods are sold in India, at the earliest date after importation but before the expiry of ninety days after such importation. (3) (a) If neither the imported goods nor identical nor similar imported goods are sold in India in the condition as impor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot correct. The valuation Rule 7, does not envisage that the prices adopted locally will have to be considered as International price, and freight, insurance, landing charges etc. have to be included thereto to arrive at assessable value. On the contrary, a careful reading of Rule 7 would make it clear that it suggests certain deductions from the available price of goods sold in India, because such prices would already have suffered freight, transportation, insurance, duty elements etc specifically under Rule 7 (1) (ii) the usual costs of transport and insurance and associated costs incurred within India have been identified as some of the relevant deductions. Therefore, having agreed that in the instant case valuation is to be resorted t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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